Software designer questions blacked-out eTreppid records

May 18, 2007

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The former software designer embroiled in a legal battle with eTreppid Technologies, owner Warren Trepp, said in court documents filed Friday that the company should not be allowed to hide its investors by having their names blacked out in court records.

Meanwhile, Trepp has filed a new lawsuit in Washoe District Court arguing that Dennis Montgomery has failed to repay a $1.5 million loan the company gave him after he became a shareholder in eTreppid.

Trepp and Montgomery have sued each other in federal court over ownership of valuable software that has been used by the defense department in the war on terrorism.

Gov. Jim Gibbons is the target of FBI and federal grand jury investigations into claims that he used his influence in Congress to secure millions for Trepp in defense contracts in exchange for money, a cruise

and casino chips.

Gibbons and Trepp deny the charges.

On Tuesday, Trepp filed a motion asking the court to redact the Social Security numbers and names of eTreppid investors from documents involving an unconstitutional FBI search of Montgomery's home.

But in his motion filed Friday, Montgomery's lawyer, Michael Flynn, said the names should be available so that Montgomery can contact them for the trial to find out what role they might have played in the business.

"The evidence will show that Trepp washed his personal expenses through eTreppid, including his and his wife's private jet flights, which is one of the reasons Mr. Montgomery and Trepp had a falling out," the motion said.

Flynn also argued that the public has a right to know who is involved in eTreppid, and any investors knew they risked exposure by becoming involved with Trepp, a former trader with Michael Milken.

The motion said the sealed material in the search case and the publicly known information in the civil lawsuit have become "intertwined," including information about Gibbons' relationship with Trepp.

"Nevada's governor has said Trepp was 'a close personal friend,' and 'like a brother,' even though they had not known each other that long," the motion said.

"The public wants to know and has a right to know what Trepp was doing with eTreppid, and its alleged investors, particularly considering that government defense contracts, secured with Gibbons' help after Trepp gave him reported and unreported campaign contributions and more, were appropriated to eTreppid and thus its 'investors.'"

In the new lawsuit filed by Trepp through one of his companies, California-based Friendly Capital Partners, it states that when Montgomery and Trepp first formed their company, Montgomery was given a loan of $180,000.

In 2000, the suit said, the loan grew to $600,000 and by 2005, the loan topped $1.3 million. With interest, the suit said Montgomery owes Friendly Capital $1.5 million.

Flynn said in his motion that they object to this new suit because the court has issued a filing moratorium in the cases. He said Montgomery was working to move this new suit to federal court.